HUD For Non Occupant
Is there any loopholes out there for getting a bid in on a HUD if you don't plan on occupying it? I do have a 19 yo daughter I could put in it but was wondering if there is a time line before I could pull her out and rent it. I'm tired of losing my bids to owner occupants...any ideas? I'm not looking for anything illegal just a loophole that you all may know of. Thanks
There is no loophole when purchasing HUD properties when it is in the owner occupied bid status.
HUD normally will favor a bid on owner occupied no matter the status!
Your best advantage in this game would be to seek out a HUD qualified realtor or broker and detail out your investment wants and let them work on your behalf.
I would see what realtor or broker makes the most purchases on HUD properties in your area and this will be an easy search by going to http://bally.towerauction.net/i6/ga/ and check Bid Statistics for the last 60 Days at http://bally.towerauction.net/i6/ga/.
Your top 10 active players in your area are:
1. MARTINEZ REALTY COMPANY
2. MEYBOHM REALTORS LLC
3. VETERANS REALTY CO INC
4. CENTURY 21 JEFF KELLER REALTY
5. AC G REALTY COMPANY
6. ANNE ECKERSON REALTY INC
7. BLANCHARD CALHOUN REAL
ESTATE CO
8. RE MAX MASTERS INC
9. PROMIS LAND COMMUNITY DEVELOPMENT
10. TOMMY MCBRIDE REALTY INC
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I am not sure whether the HUD rules have changed in the last five years, but FIVE YEARS ago, the answer would have been: Yes, you can purchase during the owner occupied bid period if a family member will occupy the property. If your daughter will live there for at least one year, then you can qualify for owner-occupant status.
Remember that my information is five years old, but I think it unlikely that this rule has changed since. Best to check with your HUD approved real estate broker to confirm.
The rule for owner occupant purchasers (people who are buying the home as their primary residence) is simple, the deed will have to be in the name of the occupant.
If you have a relative stay in the property and the deed is in your name it is not classified owner occupant.
You must agree to make the home your sole residence from one to three years following the purchase and if you are found in violation of this you are held in breach of contract and could face heavy fines and or jail time.
HUD's owner occupant purchaser's policy has been the same for over 5 years "If you take title you must make the home your sole residence".
This is not a discredit to NewKidinTown2 as I simply see this a misunderstanding of HUD's rules.
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Hey,
Why not just put your daughter on the title? Wouldn't that solve the OO issue? That just leaves the amount of time to live in the house.
Is there actually a time limit mentioned in the HUD laws/rules?
I guess I need to know the time line for occupying it then renting it. Wouldn't be flipping as I do only buy and hold stuff. A year is tolerable..five is not.